Investment theory and application continues to evolve and we believe investment strategies should evolve as well. Our methodology is based on timeless principles such as strategic asset allocation and diversification. We also review more recent academic and institutional research, incorporating those ideas that have been well substantiated by multiple studies.
Diversification. Based on your goals, investments are matched with a base asset allocation that is diversified among different asset classes (U.S. Stocks, International Stocks, Bonds, Alternatives, Cash) and diversified within each asset class. Exchange-Traded-Funds (ETF’s) are the primary tools used as they are an efficient means of diversifying within each asset class.
Risk Management Overlay. Asset classes and sectors within asset classes fall in and out of favor. Ideally, we’d like to be overweight in those asset classes that are in favor and underweight in those that are out of favor. Using a disciplined process, our investment portfolios adapt to changing market conditions. Research has shown that using a diversified portfolio with this type of risk management overlay can help reduce the downside volatility over a similar portfolio with no active risk management.
Investments are custodied with Pershing, LLC.